Entrepreneurship the answer to post Covid economic revival

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South Africa Headlines News

A viable alternative to formal employment for the multitudes of unemployed people in SA

The outbreak and global spread of Covid-19 will go down as one of the most disastrous pandemics in modern human history, with more than 178-million confirmed cases recorded globally to date and nearly 4-million people dead. The last time the world experienced a pandemic of this nature and scale was almost a 100 years ago, when the “Spanish flu” killed about 50-million people.

The increase in SA’s unemployment rate had already been on an upward trend even before the onset of Covid-19 due to an economy that’s been sluggish for the better part of the past two decades. This despite concerted efforts from the government, private sector, NGOs and other stakeholders to curb the trend. These sobering numbers provide fertile ground for social instability, especially in the context of the pandemic.

Creating an environment where entrepreneurs can thrive could lead to the rise of more SMEs, whose importance in the growth of any economy and job creation can no longer be gainsaid. In Africa, SMEs represent a significant part of the economy as they constitute about 90% of private businesses and contribute more than 50% of country employment rates and as much as 40% of GDP in most countries.

 

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